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tv   Nightly Business Report  PBS  August 9, 2013 4:30pm-5:01pm PDT

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report" with tyler mathisen and susie gharib brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures, viking river cruises, exploring the world in comfort. presidential news conference, president obama spent the afternoon addressing a number of issues important to both business and the american people. from healthcare to the fed, to the government surveillance program. donnie brooke in isle six, the battle between j.c. penney,
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the ceo and shareholders in public. is this war fair ever good for shareholders. bringing jobs home. more companies are moving overseas operations back to the u.s. but not just workers benefit. who else is reaping the rewards as we wrap up the series made in america. all that and more tonight on "nightly business report" for friday, august 9th. and good evening everyone and welcome. i'm tyler mathisen along with sue herrera. susie gharib has the night off. in a far-reaching press conference today, the first in three months, to took questions and gave answers on top picks critically important to american business. he tackled healthcare reform and the possibility of a government shut down to immigration, privacy and whom he might choose as the next chairman of the federal reserve. >> good evening, tyler, the president addressed a series of issues, as you say, in his press
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conference today and said he doesn't think the leaker from the nsa, edward snowden, is a patriot and released a series of reforms he would like to implement. here is how the president described what he would like to do. >> we can't and must be more transparent so i directed the intelligence community to make public as much information about these programs as possible. we have already declassified unprecedented information about the nsa but we can go furter. >> and asked about who he'll pick for the next chairman of the federal reserve he said he didn't want to tip his hand of who he would pick but has two candidates and explained why the white house was defending larry summers in public. take a listen. >> the perception that mr. summers might have an inside track simply had to do with a bunch of attacks that i was hearing on mr. summer's
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preemptively, which is a standard washington exercise that i don't like. >> reporter: so tyler, obviously, this is very personal for the president. he has a relationship with larry summers. he didn't like to see the piling on. that might explain leaks we saw over the past couple week complaining that larry summers might be the front runner for the job, the president insisting, though, today he hasn't picked a candidate yet. >> he talked a little bit today about the implantation of obamacare, healthcare reform and the possibility that a government shut down might be used as a weapon in that funding battle. give us some thoughts on that, am amin. >> reporter: he said if you implement something as big as obamacare, as he calls it now and expects there will be glitches here. nonetheless, he said he doesn't like the politics on the republican side threatening a government shut down. he tried to position it as republicans trying to shut down the government to block 30
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million americans from getting access to healthcare that, he said, is simply a bad idea. >> thank you very much. >> reporter: you bet. a development late today in the long running patent battle hitting apple and samsung over smart phone technology. this is what we know now. the international trade commissionish sh issued a rulin samsung devices that infringe on two apple patents but found no violation on four others. blackberry got a big boost on a report the company is considering going private. the ceo and bored are reportedly discussing the idea because it would give them time to fix the problems out of view. some remain skeptical such a deal is likely to happen. the stock finished the day up almost 6%. on wall street, investors found little reason to buy as the dow snaps the six-week
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winning streak closing at a one-month low and volume was light but not just today, all week long. logging the lowest volume week since august of 2006. in the end, the dow closed down 72 points to 15,425 and the s&p fell 6 and nasdaq off by six months. the timewarner, cbs dispute. the agency is urging them to resolve the dispute as soon as possible and it's ready to act if this dispute continues. acce separately timewarner customers filed a class-action lawsuit in milwaukee and seeks damages for breach of contract and compensation for every customer in southeast wisconsin. they will miss the packer game. that's one reason why the suit was filed. j.c. penney's shares slid near lie 6% as a nasty spat between the largest shareholder
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and the company's bored bubbled over in public once again. activist investor bill ackman sent the second public letter in two days calls for the ouster of tom and a search for a ceo. the letter charged personal decisions were made inappropriately and him and bored members were frozen out and vendors said they were worry that penny was being too optimistic in buying inventory. they called the comments quote misleading, inaccurate and counterproductive. whatever, it's what you rarely see in american business but more of in recent weeks and here to discuss what happens when companies fight among themselves or each other is yale school of management dean jeffrey. great to see you again. >> it's great to see you. >> whenever i see this kind of open bored room welfaar war fai
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out is it good for shareholders, or should i run the heck away? >> it's not good for shareholders. you see a fleeting pop yesterday, tyler thanks quickly disappeared because people thought well maybe there is some pending news that will be good news about some major announcement of a change coming, but now, when you have this disillusion we saw it at the old, old, hp bored where tom perkins and jake went to war with their own bored, and that kind of stuff was bad for all parties. you seen it at motorola in the past and it's quite destructive. in this case, we have a historic breach of duty of loyalty where bill ackman as independent or outside investor can say whatever but as a bored member he has to represent a bored and attacking the bored like this is
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a break down in the trust on the board and of course, putting out confidential strategic information is a no, no and the bored should remove. 16% is not controlling interest. >> it comes, with the new ceo being on the job for four months and turning around a company that's been troubled for sometime. it doesn't -- regardless of whether it's politically correct or not, they haven't given this gentleman much time. >> no, they haven't given mike much time. he was responsible for a stock price four times the present stock price, and mike was pushed out. the guy that took the stock up four times where it was today was pushed out by none other than bill who had another candidate and gave overly rosy portrait to. he wrongly contributed to the success of the apple stores and made a mess of things. of course, the stocks plummeted
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and they lost a third of the retail sales, massive layoffs. it will take time to rebuild, you're absolutely right, sue. an interim has to be given some time to fix the ship. >> let me take the other side of the argument for just a moment, jeff, and here is a company that's clearly troubled. i guess you can make the case ackman is being classically disrupted and companies like j.c. penney need a disruptor to come and shake things up. >> you can be a disrupter all you want within the confines of the bored room while you're on that bored but this is not like municipal city counsel meeting or frankly this is a problem of somebody in congress that thinks they are representing a narrow constituent and not their full base. as a bored member in the western governance you have to represent not just bill's of the moment
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but the full base of investors and you can't have broad-side attacks. if he wants to do it from the inside fast but you can't sort of have these confidential information. that's the break down trust. he likes the rosey o'donald slap down trusts and that doesn't work here and preference of all things, it's a wonderful retailer and has food locker as a bored member and men's warehouse to deal with. >> thanks, jeff. have a good weekend. >> thank you. a potential settlement between jp morgan and the securities commission would require the firm to admit wrongdoing in the handling of the london trading laws, banks neither admitting or denying cupbility and the first admission under the new program spearheaded by marry joe white. well, back to school it's one of the most important
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shopping seasons of the year and this year shoppers will looking for discounts, so courtney regan hit the outlets to see how high-end retailers are trying to take advantage of bargain hunters. >> retailers may be holding a collective breath hoping the shoppers are coming soon. this weekend is traditionally a big one for back to school shopping but summer sales haven't inspired confidence that retail's second most important season will be a strong one. july saw weak traffic at traditional malls while american eagle and aeropastal warned about low earnings. while some have within disappointi disappointing, a didn't story at the outlets. in new york, there are actually lines of shoppers waiting outside to get in to some of the stores. >> clearance racks are unbelievable. >> better to get it here or
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something else, cheaper. >> reporter: lloyd and taylor competitors, sacks and nordstrom have more outlet locations and are opening more. michael kors is expanding it's outlet footprint, too. >> the value proposition continues to lead. with that, outlets are the main place you can go one stop shop. you got out wargeall the bargai could want. >> reporter: bargains for back to school. it's not just happening with adults, it's trickling down to teens. >> the teen is looking for a number of on trend and fairly high priced point brands, so it's michael kors, kate spade, tory birch, calvin kline and they continue to have appeal for that teen consumer in accessories. >> looking for a wallet to get for school. michael kors has bags for like 50% off, so they are good and
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they are nice bags, too. >> reporter: so much for being excited about fresh number 2 pencils for back to school. for "nightly business report" i'm courtney regan in central valley, new york. still ahead, you scratch my back, i'll scratch yours when companies bring jobs back to want u.s., the economic benefit extend all the way to capitol hill. but first, a look at how the international markets closed today. we start tonight ee's marke focus with a high flier, really high. price line is ticks away from being the first stock to trade above $1,000 a share. investors jumping into the travel booking company following the better than expected
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earnings, which we told you about last night. shares up 4% today hitting 995 before leveling off. but wall street has loved this company for quite awhile. the stock is up 3,000 percent over the last deck said. so if you invested $10,000 in 2003 that would be worth about $300,000. a different story for shares of dendrion. sales of the prostate cancer therapy drug will be weaker than expected that drug, which has a high praise tag is facing tougher competition. the stock plummeted at 26% today to finish at $3.39. and yet another company made it's trading debut today. several, in fact, an event management software maker soared on the first day of trading following cloud-based ipos. it helps customers plan events, venues and surveys.
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shares priced at $21 and finished to $32.92. five other companies hit the street today, as well, making it the biggest day for ipo since may and here is how they made out. franks international which provides drilling equipment and services to the oil and gas industry gained nearly 20%. qep mid stream, mix telematics showed gains and world point was the only loser in the group. rough week for the dow and s&p. they fell four out of five days. here with his thoughts on where the market goes from here is david, chief investment officer. good to see you, welcome. >> thanks, sue, glad to be here. >> four out of five days has some people on the floor of the new york stock exchange saying the rally is over. is it over or is this the pause that refreshes? >> i'm nervous. we're not market timers, per se,
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but this market is up nonstop and we're increasingly finding it hard to find true bargains to put in the portfolio and we only own 20 or 22 stocks. the pickings are rather slim from our vantage point these days. >> let's go to stocks which our viewers are asked about beginning with one that meets the sort of description you just had that's come a long way. ben rights would love to hear you opinion about tesla, the stock has gone up fast. what does the future hold on tesla? >> the future for the car company is terrific. the stock is up 475% in the past year and a lot has to really go right for the company to make an investment in these shares at current prices i think to be an attractive investment. so i think it's a great car, a great potential business, but i
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think there is so much reflected in the current stock price. i think i would head for different areas right now. >> all right. let's move on and gregory asks us to please discuss haynes. what do you think of that? >> same kind of story. i think the stock has far out performed what the business can do. ist -- it's a great business but the stock compounded over the past years and when you look at the current evaluation, it's almost 30 times price to free cash flow. i think the stock is well ahead of where the business growth would be. >> let's go to biogen modeck. is it a good-bye at this price? >> i'll go 0-3 today. it's great business, stocks up better than 50% compounded over the last three years. a $10,000 investment in these
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shares beginning of 2010 are already up over -- to $40,000 and again, here is a stock that's on -- in evaluation met trick is very, very rich. >> where would you put cash to work right now? you love apple you say, why? >> it's been a tough year, no doubt about it. we don't think apple is broken growth. we think the echo system is alive and well. we're just -- we can see the light at the end of the tunnel for some new products in the fourth quarter. it will continue into next year so 2013 was a year of investing and cap x, you know, buying back the shares. we think cisco 2014 is a resumption of growth and a little more than ten times earnings. we think the risk reward is very attractive. >> and you own the stock, correct? >> yes, we do. >> david, thank you. have a great weekend. >> thank you. >> wedge wood partners. it's not just u.s. companies bringing jobs back to the u.s.,
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some foreign firms are opening new plants on american soil. workers get jobs, corporations get good pr and gain something else, influence in washington. wrapping up the special series, made in america. >> our major goal -- >> north carolina is moving forward. >> we think it's good for the state. >> reporter: it was a better day in north carolina, announcing a new manufacturing plant and as documented in this lenovo video, they were there to cheer on. >> that's the public relations wind fall companies can count on when they announce manufacturing jobs in the united states and they can be more than an economic opportunity but an opportunity to curry favor with political officials here in washington. on this web page the company working for lenovo boosts that
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five leaders spoke on behalf at the event and the firm assisted them in the development of talking points and messaging for the event. the chinese computer company is a firm that can use good press with the u.s. government and sought to sell it's products to the military, the state department and others. >> this year apple will make macs in america again. >> reporter: tim cook scored a seatobama's state of the union seat after they invest $1 hundred million to bring jobs back to the united states. >> apple then sought, successfully, the holy grail of tax avoid ens. >> reporter: that can come in handy with a company, especially when it comes under scrutiny on capitol hill for tax practices a month later. still ahead, heavy rains and
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high heat are hurting the country's vegetable crops. now supply is shrinking, prices are spiking and you are paying the price. first let's take a look at commodities, treasuries and currencies and how they did today. a seven-year-old may be happy to hear this, you may have an excuse not to eat your veggies. no sir mac. a plant virus devastating crops and causing sticker shock. a look at the rising price of your leafy greens. >> reporter: there is a problem in america's largest backyard garden, also known as california. >> so you see this as opposed to
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thi this. >> reporter: here what's referred to as the nation's salad bowl there isn't enough lettuce or tomato. >> we're in an unprecedented type of situation here. >> reporter: first, the lettuce, vegetable marketer mark mcbride says iceberg prices are up 150% in a year as a perfect storm on weather problems across the nation impacts the crop and in case you needed an excuse to avoid vegetables look at the price hikes. >> spinach tender nature really got hit hard by the heat where last year we were 8.50 to 9.50, we're to 22 bucks for a carten. >> this is a plant stung by a sugar bee during the productive cycle. >> reporter: california's billion-dollar tomato industry
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is facing a longer-lasting problem. a pest virus that destroys the plants. 90% come from here. >> we had yields reduced by 70 and 80%. there are some processers estimating of the 13 million ton crop we contracted, they could have a 2 million ton deficit. >> reporter: consumers could see prices eventually rice for salsa and spaghetti sauce. it doesn't take long to grow more, as long as the weather cooperates and you can grow your own. jane wells, los angeles. >> and in california, if you live in silacon valley, you're coughing up a lot for your house. the average price of a home topped $1 million for four straight months and the tech industry is are rebound. prior to this year the only other time that a single family home cost that much was right before the housing crash back in
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2007. makes new york look cheap, ty. >> 1 million dollars for the medium home, wow. >> thanks for watching, susie gharib is back on monday and remember to support your public television station. >> and on behalf of your public television station, thank you for your support and we'll see you back here again on monday evening. "nightly business report" has been brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures, viking river cruises, exploring the world in comfort.
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